If you're made redundant, student loan payments should be deducted from any redundancy payment you receive.
Deducting the right amount of student loan repayment
It's your responsibility to make the right amount of student loan repayments from your redundancy payment. You may need to work with your employer to make sure they deduct the right amount.
If you're using either:
- a main job tax code and earning over the pay period repayment threshold
- a secondary tax code
Then your employer deducts repayments from any redundancy payment you receive.
If you're using a main job tax code and earning below the pay period repayment threshold, then your employer deducts repayments from the portion of the payment that's over the repayment threshold.
After you're made redundant
If you get another job, give your new employer the right tax code so you do not get behind in your repayments.
If you do not get another job, review your total income for the year up to now. If it's over the threshold you need to keep making payments to ensure you do not end up with a bill at the end of the year.
If you have a bill you cannot pay
Contact us if you have a student loan bill you cannot pay. We'll discuss your options, including repayment by instalments.